C1C3C4C5C6C7C8C9C10C11C12C13C14C15C16C19Part II Local transport

Annotations:
Modifications etc. (not altering text)
C1

Pt. 2: power to amend conferred (17.10.2007 for specified purposes, 1.4.2008 in so far as not already in force) by Concessionary Bus Travel Act 2007 (c. 13), ss. 8(1), 9(1)(2), 10(1)(2), 15(1); S.I. 2007/2799, arts. 2, 3 (with art. 4)

C5

Pt. 2: delegation of functions (1.4.2016) by The Tees Valley Combined Authority Order 2016 (S.I. 2016/449), arts. 1(a), 6(b)

C6

Pt. 2 functions made exercisable (9.2.2017) by The West of England Combined Authority Order 2017 (S.I. 2017/126), arts. 1(3), 8

C7

Pt. 2 functions made exercisable (9.2.2017) by The West of England Combined Authority Order 2017 (S.I. 2017/126), arts. 1(3), 8(1)

Financial and competition provisions

I1C19C18152C16 Agreements providing for service subsidies.

1

Part V of the M1Transport Act 1985 (expenditure on public passenger transport services) is amended as follows.

2

In section 89 (obligation to invite tenders for subsidised services), for subsections (7) and (8) substitute—

7

An authority issuing an invitation to tender under this section shall, in determining whether to accept a tender submitted in response to the invitation or which (if any) of several such tenders to accept, have regard in particular to—

a

a combination of economy, efficiency and effectiveness;

b

the implementation of the policies set out in the appropriate bus strategy; and

c

the reduction or limitation of traffic congestion, noise or air pollution.

8

In subsection (7)(b) above “the appropriate bus strategy” means—

a

in the case of a local transport authority (within the meaning of section 108(4) of the Transport Act 2000), their bus strategy;

b

in the case of a district council which is not such an authority, the bus strategy of the council for the county in which the district is situated; and

c

in the case of a Passenger Transport Executive for a passenger transport area, the bus strategy made jointly by the Passenger Transport Authority for the area and the councils for the metropolitan districts comprised in the area.

3

In section 90(3) (duty of authority to publish reasons for considering that payment of subsidies to secure service in accordance with accepted tender is conducive to achieving most effective and economic application of funds), for the words from “is conducive” to the end substitute “ accords with section 89(7) of this Act. ”

4

In section 92(1) (authorities subsidising public passenger transport services not to inhibit competition between persons providing or seeking to provide such services in their area), for the words from “so conduct” to the end substitute “ have regard to the interests of the public and of persons providing public passenger transport services in their area. ”

I2C19C18153C16F6Competition test: functions and agreements relating to buses

1

Schedule 10 contains provision applying competition tests in relation to—

a

the exercise of functions relating to F23advanced quality partnership schemes, quality partnership schemes, F29advanced ticketing schemes, ticketing schemes F31, enhanced partnership schemes and subsidised local services,

b

voluntary partnership agreements and certain other agreements, decisions and practices relating to bus services.

2

A voluntary partnership agreement is any voluntary agreement under which—

a

a local transport authority, or two or more local transport authorities, undertake to provide particular facilities, or to do anything else for the purpose of bringing benefits to persons using local services, within the whole or part of their area, or combined area, and

b

one or more operators of local services undertake to provide services of a particular standard.

3

In subsection (2)—

  • “facilities” means—

    1. a

      facilities provided at specific locations along routes served, or proposed to be served, by local services within the area to which the agreement relates, or

    2. b

      facilities which are ancillary to such facilities;

  • “standard”, in the case of any services, includes—

    1. a

      any requirements which the vehicles being used to provide the services must meet,

    2. b

      any requirements as to frequency or timing of the services,

    3. c

      any requirements as to the maximum fares that may be charged for particular journeys, or for journeys of particular descriptions, on services to which the agreement applies;

  • “voluntary agreement” means an agreement made otherwise than under F24sections 113C to 113O (advanced quality partnership schemes), or under sections 114 to 123 (quality partnership schemes).

I3C19C18154C16 Grants to bus service operators.

C17C201

The Secretary of State with the approval of the Treasury (as respects England) or the National Assembly for Wales (as respects Wales) may make grants to operators of eligible bus services towards their costs in operating those services.

2

The Secretary of State with the approval of the Treasury (as respects England) or the National Assembly for Wales (as respects Wales) may make provision by regulations as to the method of calculation of grants.

3

Subject to the provisions of any such regulations, grants under this section shall be of such amount and subject to such conditions (including conditions requiring their repayment in specified circumstances) as may be determined by—

a

the Secretary of State with the approval of the Treasury (as respects England), or

b

the National Assembly for Wales (as respects Wales).

4

A determination under subsection (3) may be made either generally or in relation to particular cases or classes of case.

5

In this section “eligible bus services” means bus services of a class (or using vehicles of a class) prescribed by regulations made by the Secretary of State (as respects England) or the National Assembly for Wales (as respects Wales).

6

Section 92 of the M2Finance Act 1965 (grants towards duty charged on bus fuel) and section 111 of the M3Transport Act 1985 (unregistered and unreliable local services: reduction of fuel duty grant) cease to have effect.

I4C2C19C18155C16F14Sanctions

1

Where F20a traffic commissioner is satisfied that the operator of a local service has, without reasonable excuse—

a

failed to operate a local service registered under section 6 of the M4Transport Act 1985,

F15aa

failed to comply with the requirements of regulations made under section 6(9)(i), (j) or (k) of that Act,

F22ab

failed to comply with a requirement to provide information imposed by virtue of section 6C of that Act,

b

operated a local service in contravention of that section or section F25113J(4) or (5), 118(4) F32, 129(1)(b) or 138J(9) of this Act,

F19ba

failed to comply with a requirement imposed by virtue of section F26123X(7)(c), 134B(7)(c) F33or 138S(7)(c) of this Act, or

c

failed to comply with section F30134F, 138 or 140(3) of this Act, F21 or with regulations under section 141A of this Act

he may F7make one or more orders under subsection (1A).

F271ZA

Where a traffic commissioner is satisfied that—

a

a person has operated a local service in contravention of section 123J(3) of this Act, and

b

in operating the local service, the person has failed to take all reasonable precautions and to exercise all due diligence to avoid contravening section 123J(3) of this Act,

the traffic commissioner may make one or more orders under subsection (1A)(a) or (d).

F341ZB

Where a traffic commissioner is satisfied that—

a

a person has operated a local service in contravention of section 138J(9) of this Act, and

b

in operating the local service, the person has failed to take all reasonable precautions and to exercise all due diligence to avoid contravening section 138J(9) of this Act,

the traffic commissioner may make one or more orders under subsection (1A)(a) or (d).

F281ZC

Where a traffic commissioner is satisfied that the operator of a local service has failed to take all reasonable steps to comply with a requirement imposed under section 143A of this Act, the traffic commissioner may make one or more orders under subsection (1A)(a) or (d).

F351ZD

Where a traffic commissioner is satisfied that the operator of a local service has failed to take all reasonable steps to comply with a requirement imposed under section 143B the traffic commissioner may make one or more orders under subsection (1A)(a) or (d).

F361ZE

Where a traffic commissioner is satisfied that the operator of a local service has, without reasonable excuse, failed to comply with a requirement of regulations made under section 181A of the Equality Act 2010, the traffic commissioner may make one or more orders under subsection (1A)(a) or (d).

F161A

The orders are—

a

an order that the operator pay a penalty of such amount as is determined in accordance with subsection (3);

b

an order that the operator expend such sum of money as is determined in accordance with subsection (3) in the manner mentioned in subsection (1B);

c

an order that the operator provide compensation (see subsection (1C)) to passengers of such description as is specified in the order;

d

an order of such other description as the Secretary of State (as respects England) or the Welsh Ministers (as respects Wales) may by order prescribe for the purposes of this paragraph.

1B

An order under subsection (1A)(b) may require the operator to expend money on or towards—

a

the provision of specified local services or specified facilities to be used in connection with such services;

b

specified improvements in such services or facilities.

In this subsection “specified” means specified in the order.

1C

Compensation under subsection (1A)(c)—

a

may take the form of payments of money, or

b

may take such other form (including the provision of free travel or travel at a reduced price) as is specified in the order;

and shall be of such amount, or equivalent in value to such amount, as is determined in accordance with subsection (3).

F82

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

F4The amount mentioned in subsections (1A)(a) and (b) and (1C) is such amount as the traffic commissioner thinks fit in all the circumstances of the case, but must not exceed —

a

£550, or

b

such other amount as the Secretary of State (as respects England) or the National Assembly for Wales (as respects Wales) may by order specify,

multiplied by the total number of vehicles which the operator is licensed to use under all the PSV operator’s licences held by him.

F94

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

After F10making an order under subsection (1A) , the traffic commissioner must at once give notice in writing to—

a

the Secretary of State (as respects England) or the National Assembly for Wales (as respects Wales), and

b

the operator.

6

The operator may appeal to the F17Upper Tribunal against F11the making of the order.

F126A

If the operator fails to comply with an order under subsection (1A)(b), (c) or (d), the traffic commissioner may order the operator to pay a penalty of such amount as is determined in accordance with subsection (6B).

6B

That amount is such amount as the traffic commissioner thinks fit in all the circumstances of the case, but must not exceed 110% of the maximum amount which may be ordered in accordance with subsection (3).

F137

An amount ordered to be paid under subsection (1A)(a) or (6A) is—

a

payable to the Secretary of State (as respects England) or the Welsh Ministers (as respects Wales), and

b

recoverable as a civil debt.

F38

Other provisions that may need to be considered include the following provisions of the Transport Act 1985—

a

sections 26 and 27 (attachment of conditions to PSV operator's licence),

b

sections 27A and 27B (additional powers of traffic commissioner where services are not operated as registered etc).

F1C19C18156C16 Non-metropolitan transport grants.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I5C19C18157C16F5Grants to Integrated Transport AuthoritiesF37, combined authorities and combined county authorities

1

The Secretary of State may, with the approval of the Treasury, make grants to F2the Integrated Transport Authority for an integrated transport area in England for the purpose of enabling the Authority, or the Passenger Transport Executive for the area, to carry out any of their functions.

F181A

The Secretary of State may, with the approval of the Treasury, make grants to a combined authority for the purpose of enabling the authority to carry out any of their functions.

F381B

The Secretary of State may, with the approval of the Treasury, make grants to a combined county authority for the purpose of enabling the authority to carry out any of their functions.

2

Grants under this section shall be of such amount and subject to such conditions (including conditions requiring their repayment in specified circumstances) as the Secretary of State may, with the approval of the Treasury, determine.

3

A determination under subsection (2) may be made either generally or in relation to particular cases or classes of case.

I6C19C18158C16 Repayment of grants towards bus fuel duty.

1

Section 111 of the M5Transport Act 1985 (unregistered and unreliable local services: requirement to repay twenty per cent. of bus fuel duty grants) is amended as follows (until it ceases to have effect as a result of section 154(6)).

2

For subsections (2) to (4) substitute—

2

If any amount has been paid to the operator by way of grant under section 92 of the M6Finance Act 1965 (grants towards duty charged on bus fuel) in respect of any services operated during the period of three months ending with the day on which the determination under subsection (1) above is made, there is due from the operator—

a

to the Secretary of State (as respects England); or

b

to the National Assembly for Wales (as respects Wales),

such percentage of that amount as the traffic commissioner thinks fit in all the circumstances of the case.

3

The percentage determined shall be at least one per cent. but not more than twenty per cent.

4

A traffic commissioner who makes a determination under this section shall at once give notice in writing to—

a

the Secretary of State (as respects England) or the National Assembly for Wales (as respects Wales); and

b

the operator;

and the operator may appeal to the Transport Tribunal against the determination.

3

In subsection (5), omit—

a

“to the Secretary of State”, and

b

the words from “and any amount” to the end.

I7C19C18159C16 Abolition of financial plans of Passenger Transport Executives.

Sections 3 to 5 of the M7Transport Act 1983 (duty of Passenger Transport Executives to prepare three-year financial plans and determination of revenue grants) shall cease to have effect.